NEW YORK--(BUSINESS WIRE)--Elliott Associates, L.P. and Elliott International, L.P. (together,
“Elliott”) and Bluescape Resources Company (“Bluescape”) (collectively
the “Sempra Shareholder Group”), which together own a $1.5 billion or
4.9% economic interest in Sempra Energy (the “Company” or “Sempra”),
today released the following statement in advance of Sempra’s analyst
day scheduled for today, June 28, 2018:

We are disappointed that, despite our best efforts to make measurable
progress toward an agreement with Sempra, no real progress toward this
goal has yet been made.

We intend to review the Company’s analyst day presentation today with an
open mind, but the yardstick we will use to measure the Company’s
stand-alone plan will be our illustrative Sustainable Sempra Plan. As
outlined in our June 11th
letter and presentation, we believe the Sustainable Sempra Plan
represents an $11-$16 billion readily achievable value creation
opportunity, resulting in $139-158 per share for Sempra.

In advance of today’s analyst day, we also thought it appropriate to
share what research analysts have said about the Sustainable Sempra
Plan. Reactions from both the equity and credit research analyst
communities have been uniformly and strongly positive, with numerous
analysts increasing their valuations and encouraging the Company to
engage with the Sempra Shareholder Group and commence a thorough
portfolio review with enhanced Board oversight:

“Is SRE the Next NRG? Elliott Seems to Think So… Elliott / Bluescape
executed a similar strategy at NRG. Beginning in 2017, the activists
worked with management to replace board members and undertake a
strategic review. The review resulted in asset sales and cash
optimization. NRG shares are up 99% over the past 12 months.” – UBS,
June 11, 2018

“Our experience following the evolution of the NRG and FE processes has
been that engagement with Elliott / Bluescape, and the creation of a
formal review process with no “sacred cows” has generally driven more
robust, aggressive and potentially value enhancing strategic decisions
than would have occurred in the alternative.” – Evercore ISI, June 12,
2018

“Ultimately, we believe these measures, if enacted, would be credit
positive as it would help mitigate holdco leverage concerns as well as
simplify the portfolio and exit higher risk businesses.” – J.P. Morgan,
June 11, 2018

“A successful execution of this strategy would go a long way in removing
the conglomerate discount assigned to shares. At the end of the day, we
would expect that Elliott Management and Bluescape could have a similar
impact that it has had with NRG.” – Guggenheim Securities, June 11, 2018

We believe these positive reactions are indicative of broader
investment-community sentiment regarding the Sustainable Sempra Plan,
and they echo the feedback we have received from other Sempra
shareholders. A larger sample of analyst opinion can now be viewed at SustainableSempra.com/support.

We continue to believe our simple proposal for new highly qualified
directors and a full, independent review of Sempra’s portfolio and
operations is the right path forward at this time. We encourage Sempra
to engage with us expeditiously and in good faith to reach an agreement
on new directors and an appropriate committee structure to facilitate an
independent strategic review.

Elliott Management Corporation manages two multi-strategy investment
funds which combined have approximately $35 billion of assets under
management. Its flagship fund, Elliott Associates, L.P., was founded in
1977, making it one of the oldest funds of its kind under continuous
management. The Elliott funds’ investors include pension plans,
sovereign wealth funds, endowments, foundations, funds-of-funds, high
net worth individuals and families, and employees of the firm.

ABOUT BLUESCAPE

Bluescape, founded in 2007, is a private investment firm focused on
value-oriented investments in the upstream oil and gas and power
industries. Bluescape employs a unique approach and long-term
perspective, helping position companies for growth and value creation by
providing capital and strategic oversight with its multi-disciplined
team of executive-level managers, operators, strategic consultants, and
restructuring advisors.